MH Deal Inside Daughters Roth IRA - Posted by John
Posted by John on June 07, 2006 at 23:17:08:
I have a small question to ask of the experienced posters.
Last year I attended a class put on by entrust here in my area about investing in your IRA. I set myself up with one and my 2 children with a “Coverdale IRA”.
The idea behind the coverdale is that it can be used for education expenses. Not just college but PRIVATE school and college. So my thoughts were that since my children are in a good private school I would partner (not loan money to which is against the rules) with my daughters IRA where we split percentage wise the expenses/profit and cashflow.
I funded their accounts with 2.5K each.
Park called me today with a 3/2 s/w 80’ish that they’re willing to “give” me for $500. It needs some plumbing work, electric checked, roof sealed, walls repairs (either panelling or drywall), rotten floorboards replaced, kitchen cabinets need painting and new hardware, sink, hot water heater is missing, carpet, paint and new light fixtures since there aren’t any.
I just rto’d one for 1k down and 675/mo for 36 months. I pay the lot rent of 355 so that leaves a cashflow of 320 a month.
So, my 1st childs school is 175 a month. My youngest is still in preschool which is 75 a week or 300 a month. For a total of 475 a month.
If I were to 55/45 partner a deal with my oldest daughter that would cover her private school cost. Tax free mind you.
My 45% would get me an extra $145 a month in my pocket. Minus taxes of course.